Which of the following is an advantage of monetary policy?
A) It is largely removed from politics.
B) It is flexible with regard to the size of the change to be implemented.
C) The first steps toward changing the money supply can be taken the day the decision to do so is made.
D) All of the above.

Question

Quizplus · Accepted Answer

Monetary policy, managed by a country's central bank, has several advantages: it is generally less influenced by political pressures compared to fiscal policy, allowing for more objective decision-making (A); it can be adjusted in scale to suit the needs of the economy, offering flexibility (B); and actions to change the money supply can be initiated quickly once a decision is made, ensuring timely responses to economic conditions (C).

Which of the Following Is an Advantage of Monetary Policy